Adjust a nominal investment return for inflation.
The real return adjusts a nominal return for inflation, showing the actual gain in purchasing power. It is computed by dividing the gross nominal rate by the inflation factor. Only real returns matter for maintaining lifestyle, since inflation silently erodes a portion of every nominal gain.
Real Return
Real return = (1 + nominal)/(1 + inflation) - 1
Real return = (1 + nominal)/(1 + inflation) - 1 The real return adjusts a nominal return for inflation, showing the actual gain in purchasing power. It is computed by dividing the gross nominal rate by the inflation factor.
Only real returns matter for maintaining lifestyle, since inflation silently erodes a portion of every nominal gain.
This calculator takes 2 inputs: Nominal return, Inflation rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.